Good point Prospekt. Double our production rate to over 200K tons/day and improve the recoveries and other cost reduction areas such as the 171M tons of waste to cash producing ore and what does that do to our net cash flow? I would say then we are valued more closely to $3-$4 per share. Also, since SC has a low geopolitical risk profile we can add a premium to those valuations too. We are extremely undervalued at these levels and I would not be surprised if we are taken out for well over $3.50 when all the optimization studies are completed and Teck makes a bid for us before year end.

Teck would still be getting a bargain for SC since they have paid only $24M to us thus far and a take out at $3.50 would give them SC for the total cost of 24 + 3.5x 415m = 1.47B. For a district that could be worth closer to 5B in value they are getting it all for 1.47B or just roughly 30% of the entire cake. They could then turn around and sell 50% to a partner and still be miles ahead. That is why, imho, we will never hear of their decision to build a mine. We will just be taken out one day and this will surprise many analysts. My 2 cents.